Comparing PermRock Royalty Trust (NYSE:PRT) & Cenovus Energy (NYSE:CVE)

PermRock Royalty Trust (NYSE:PRT) and Cenovus Energy (NYSE:CVE) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Valuation & Earnings

This table compares PermRock Royalty Trust and Cenovus Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PermRock Royalty Trust	$7.19 million	6.90	$6.26 million	$0.42	9.70
Cenovus Energy	$59.64 billion	0.59	$3.04 billion	$1.80	10.46

Cenovus Energy has higher revenue and earnings than PermRock Royalty Trust. PermRock Royalty Trust is trading at a lower price-to-earnings ratio than Cenovus Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

PermRock Royalty Trust has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Cenovus Energy has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.

Profitability

This table compares PermRock Royalty Trust and Cenovus Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PermRock Royalty Trust	85.38%	6.99%	6.86%
Cenovus Energy	8.56%	16.68%	8.75%

Analyst Recommendations

This is a summary of current ratings for PermRock Royalty Trust and Cenovus Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PermRock Royalty Trust	0	0	0	0	N/A
Cenovus Energy	0	0	4	0	3.00

Cenovus Energy has a consensus target price of $30.67, indicating a potential upside of 62.95%. Given Cenovus Energy’s higher possible upside, analysts clearly believe Cenovus Energy is more favorable than PermRock Royalty Trust.

Institutional and Insider Ownership

41.7% of PermRock Royalty Trust shares are held by institutional investors. Comparatively, 51.2% of Cenovus Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

PermRock Royalty Trust pays an annual dividend of $0.48 per share and has a dividend yield of 11.8%. Cenovus Energy pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. PermRock Royalty Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cenovus Energy pays out 28.9% of its earnings in the form of a dividend.

Summary

Cenovus Energy beats PermRock Royalty Trust on 11 of the 14 factors compared between the two stocks.

About PermRock Royalty Trust

PermRock Royalty Trust operates as a statutory trust. It owns interests in the oil and natural gas producing properties. The company's underlying properties include 22,394 net acres in the Permian Basin. The company was founded in 2017 and is based in Dallas, Texas.

About Cenovus Energy

Cenovus Energy Inc., together with its subsidiaries, develops, produces, refines, transports, and markets crude oil, natural gas, and refined petroleum products in Canada and internationally. The company operates through Oil Sands, Conventional, Offshore, Canadian Refining, and U.S. Refining segments. The Oil Sands segment develops and produces bitumen and heavy oil in northern Alberta and Saskatchewan. This segment assets include Foster Creek, Christina Lake, and Sunrise projects, as well as Lloydminster thermal and conventional heavy oil assets. The Conventional segment holds natural gas liquids and natural gas assets primarily located in Elmworth-Wapiti, Kaybob-Edson, Clearwater, and Rainbow Lake operating in Alberta and British Columbia, as well as interests in various natural gas processing facilities. The offshore segment engages in offshore operation, exploration, and development activities in China and the East Coast of Canada. The Canadian Refining segment owns and operates Lloydminster upgrading and asphalt refining complex, which converts heavy oil and bitumen into synthetic crude oil, diesel, asphalt, and other ancillary products, as well as Bruderheim crude-by-rail terminal and ethanol plants. The U.S. Refining segment refines crude oil to produce gasoline, diesel, jet fuel, asphalt, and other products. Cenovus Energy Inc. is headquartered in Calgary, Canada.